Sunday, 11 November 2012

Es vert mir finster in di oygen - Lit., It's getting dark in my eyes

Among the objections to ObamaCare, one that has not gotten as much attention as it should is the president's power to waive the law for any company, union or other enterprise he chooses.

The 14th Amendment to the Constitution provides for "equal protection of the laws" for all Americans. To have a law that can cost an organization millions of dollars a year either apply or not apply, depending on the whim or political interest of the President of the United States, is to make a mockery of the rule of law.

How secure is any freedom when there is this kind of arbitrary power in the hands of one man?

Amid the ruin and rubble of the grey morning after, it may seem in poor taste to do anything so vulgar as plug the new and stunningly topical paperback edition of my book, After America — or, as Dennis Miller retitled it on the radio the other day, Wednesday. But the business of America is business, as Calvin Coolidge said long ago in an alternative universe, and I certainly could use a little. So I’m going to be vulgar and plug away. The central question of Wednesday — I mean, After America — is whether the Brokest Nation in History is capable of meaningful course correction. On Tuesday, the American people answered that question. The rest of the world will make its dispositions accordingly.

* * *

.... In the course of his first term, Obama increased the federal debt by just shy of $6 trillion and in return grew the economy by $905 billion. So, as Lance Roberts at Street Talk Live pointed out, in order to generate every dollar of economic growth the United States had to borrow about five dollars and 60 cents. There’s no one out there on the planet — whether it’s “the rich” or the Chinese — who can afford to carry on bankrolling that rate of return.

According to one CBO analysis, U.S.-government spending is sustainable as long as the rest of the world is prepared to sink 19 percent of its GDP into U.S. Treasury debt. We already know the answer to that: In order to avoid the public humiliation of a failed bond auction, the U.S. Treasury sells 70 percent of the debt it issues to the Federal Reserve — which is to say the left hand of the U.S. government is borrowing money from the right hand of the U.S. government. It’s government as a Nigerian e-mail scam, with Ben Bernanke playing the role of the dictator’s widow with $4 trillion under her bed that she’s willing to wire to Timmy Geithner as soon as he sends her his bank-account details.

If that’s all a bit too technical, here’s the gist:

There’s nothing holding the joint up.

Like the man said, "the rest of the world will make its dispositions accordingly."

Comments

If the joint comes crashing down, it'll crush all of us -- including Obama himself. If the joint collapses into a pile of bricks, buried beneath the pile will be Obama's much dreamed-about and much craved "legacy." So the questions are: Does our narcissistic, self-intoxicated president have it in him to realize that there are limits even he cannot get beyond? Will he be able to curb his desire to spend us into utopia -- and place some restraints on all the borrowing that is leading us straight to hell? Or will he be deluded by the belief that the laws of economics apply only to ordinary mortals -- but not to him? Who knows? At the moment, all we can say is: The joint is wobbling -- and all of us inside the joint have good reason to be nervous.